Sylvania receives LOI from Samancor

West Perth-based mining explorer Sylvania Resources Ltd has received a Letter of Intent from South African miner Samancor Ltd in relation to the recovery of chrome and platinum from a number of Samancor's tailings dams at its eastern chrome and western chrome mines.

The Letter relates to both Samancor's past and current mining activities and is subject to negotiations on the terms and conditions of the agreements for each project.

According to Sylvania, the final contracts will largely reflect the technical and pricing arrangements that currently exist between Samancor and Sylvania for the Millsell and Waterkloof projects, which are already at plant construction stage.

The directors of Sylvania consider this to be a significant opportunity to increase the chrome and platinum profile of the company.

Samancor was delisted from the Johannesburg Stock Exchange in December 1998, and is jointly owned by BHP Billiton (60 per cent) and Anglo American Corporation of South Africa Ltd (40 per cent).